In a bid to support the transition to a low-carbon economy, South Africa and the United Kingdom have announced a new collaboration to bolster responsible exploration, production, and processing of minerals in the former nation.

In a joint statement, the governments of South Africa and the U.K. said that they will be working together on minerals for clean energy technologies.

The two countries also reportedly aspire to partner on fuel cell technologies, battery storage, renewable energy technologies, and energy efficiency.

According to the statement, The Department for Mineral Resources and Energy (South Africa) and the Department for Business, Energy and Industrial Strategy (United Kingdom) will hold regular ministerial and technical dialogue to communicate more effectively on deepening their minerals mining and energy collaborations.

South Africa is one of the world's top producers of platinum group metals, with a production volume of 285 metric tons in 2021.

The mining industry also accounted for about 8.7% of South Africa's total GDP in 2021, making it crucial to the country's economy. The sector employs millions of people and supports other industries through the provision of raw materials.

In 2021, a total of 458,954 people were employed in South Africa's mining industry.

According to markets analyst firm Fastmarkets NewGen's battery metals expert Jordan Roberts, South Africa produces a large proportion of the world's manganese, as well as platinum and palladium.

He also highlighted that the country has the potential to produce vanadium, nickel, cobalt, and rare earth elements - all minerals that are critical or vital.

"The country could also be a leader in solar power, with large enterprises, mines and many farmers having long since installed solar panels and other devices to ensure they have electric power and reduce their reliance on State energy company Eskom, which enforces periods of loadshedding," Roberts said.

U.K. Prime Minister Rishi Sunak said that this partnership will lead to the funding of major infrastructure developments in South Africa, thus helping the country grow economically. It would also give U.K. companies access to projects worth up to £5.37 billion over the next three years, he added.

"South Africa is already the UK's biggest trading partner on the continent, and we have ambitious plans to turbocharge infrastructure investment and economic growth together. A new education and skills partnership between the UK and the South African governments will also promote shared learning in technical and vocational education, driving youth employment," Sunak said.

Mineral
UNSPLASH